DESIGNING A VIABLE PREDICTION MARKET TO FORECAST DEFENSE ACQUISITION COST AND SCHEDULE OUTCOMES

This paper is the first to demonstrate a viable prediction market that successfully forecasts defense acquisition cost and schedule outcomes, and to provide insights for defense executive decision‐making. Already used in private industry, prediction markets can also accurately forecast outcomes and their associated risks for government programs. Using virtual money, prediction markets allow traders to ‘bet’ on some future outcome. This market mechanism turns out to be a relatively simple and accurate way to discover, aggregate, and communicate to a defense executive the collective market’s beliefs about the likelihood of an eventual outcome of an acquisition program of interest.     

概念模型验证方法研究综述

概念模型验证是保证和提高仿真可信性的重要手段,是建模与仿真VV＆A中的重点和难点．首先将概念模型的验证方法划分为非形式化方法、静态方法、动态方法和形式化方法4类,并提出了一种基于本体推理的概念模型验证方法,然后对各种方法的基本思想、基本原理、基本过程、适用对象、优缺点进行全面的分析总结,明确了各种方法的优缺点和适用范围,为如何选用各种验证方法提供参考,也明确了下一步应重点研究的问题．     

The United Nations-African Union Mission in Darfur: Implications and prospects for success

With the security situation in Darfur remaining grim, the international community passed United Nations Security Resolution 1769 that authorised a more robust peacekeeping force. This article addresses the security concerns motivating the United Nations-African Union Mission in Darfur (UNAMID), highlights the mandate and implications of the force, and compares the potential command and control issues to the experiences of the Somalia intervention in the 1990s. It closes by analysing the prospects for success of the intervention and offering some limited recommendations on ways to mitigate the risks associated with the peacekeeping effort.     

Making sense of the Southern African Development Community

SADC has a poor record in advancing peace and security in Southern Africa. Many identify poor policy frameworks and weak technical capacities as the major obstacles. Laurie Nathan goes beyond these easy explanations in his important new book on SADC. Absence of common democratic values and reluctance to surrender state sovereignty are key factors preventing SADC from making progress according to this book. This article argues that Nathan overstates the case and that there are real prospects and potentials for making further progress in regional cooperation. The lessons from the history of European integration also points to the important role of regional leadership. South Africa, in coalition with other likeminded countries, may still be in a position to move the SADC project forward.     

The case for demilitarising Lesotho

ABSTRACT

The Kingdom of Lesotho spends around five per cent of its annual budget – some 700 million Maloti ($US52.6 million) in 2017 – on the Lesotho Defence Force (LDF). Lesotho’s geographical position means that the LDF has no meaningful role regarding its primary function of defending the country from external aggression and it hardly engages in its secondary functions. In addition, the LDF has a long history of interference with democratic processes and engaging in human rights abuse. The financial resources currently allocated to the LDF could do far more for security, widely defined, if they were allocated to a number of other government expenditure categories.     

Excess capacity in weapons production: An empirical analysis∗ †

This paper analyzes a set of observations by the Congressional Budget Office (CBO) on individual weapons systems regarding whether large amounts of excess capacity exist and whether short run average cost (SRAC) appears to be severely decreasing. It is shown that the amount of excess capacity and steepness of SRAC are essentially independent of output rate. It is then argued that this suggests that production is occurring in inefficiently large plants—i.e.—off the long run cost curve.     

Defense spending and the macroeconomy

Given Kinsella's (1990, 1991) appeal for analysis to be pursued using sub‐annual level of data, we pursue such an endeavor in this paper. We examime the effect of defence spending on real output, the unemployment rate, price level, and interest rate covering a quarterly time frame 1960:1 to 1988:1 using an unrestricted vector autoregression framework. Our results parallel the findings of Kinsella in that there appears no causal relationship in either direction between defence spending and economic performance.     

A theory of war finance

This paper analyses the financial and war‐spending policies of a state that faces a conflict in which defeat would result in the loss of sovereign power and in which the material consequences, conditional on avoiding defeat, are stochastic. The analysis takes explicit account of the historical experiences of lenders, who face debt repudiation if the state to whom they have lent is defeated and who also face partial default if the material consequences of the war are unfavorable for the debtor state, even if it avoids defeat. In this analysis, the state uses war debt to smooth expected consumption intertemporally in response to temporary war spending, and the state also uses contingent debt servicing to insure realized consumption against the risk associated with the material consequences of the war. An important innovation in the analysis is to treat the equilibrium amount of war spending, the state's resulting probability of avoiding defeat, as well as the equilibrium amount of borrowing as a set of endogenous variables to be determined simultaneously.